U.S Code last checked for updates: Jun 24, 2024
§ 4502.
Definitions
For purposes of this chapter:
(1)
Affiliate
(2)
Agency
(3)
Authorizing statutes
The term “authorizing statutes” means—
(A)
the Federal National Mortgage Association Charter Act;
(B)
the Federal Home Loan Mortgage Corporation Act; and
(C)
the Federal Home Loan Bank Act.
(4)
Board
(5)
Capital distribution
(A)
In general
The term “capital distribution” means—
(i)
any dividend or other distribution in cash or in kind made with respect to any shares of, or other ownership interest in, an enterprise, except a dividend consisting only of shares of the enterprise;
(ii)
any payment made by an enterprise to repurchase, redeem, retire, or otherwise acquire any of its shares, including any extension of credit made to finance an acquisition by the enterprise of such shares; and
(iii)
any transaction that the Director determines by regulation to be, in substance, the distribution of capital.
(B)
Exception
(6)
Compensation
(7)
Core capital
The term “core capital” means, with respect to an enterprise, the sum of the following (as determined in accordance with generally accepted accounting principles):
(A)
The par or stated value of outstanding common stock.
(B)
The par or stated value of outstanding perpetual, noncumulative preferred stock.
(C)
Paid-in capital.
(D)
Retained earnings.
The core capital of an enterprise shall not include any amounts that the enterprise could be required to pay, at the option of investors, to retire capital instruments.
(8)
Default; in danger of default
(A)
Default
(B)
In danger of default
The term “in danger of default” means a regulated entity with respect to which, in the opinion of the Agency—
(i)
the regulated entity is not likely to be able to pay the obligations of the regulated entity in the normal course of business; or
(ii)
the regulated entity—
(I)
has incurred or is likely to incur losses that will deplete all or substantially all of its capital; and
(II)
there is no reasonable prospect that the capital of the regulated entity will be replenished.
(9)
Director
(10)
Enterprise
The term “enterprise” means—
(A)
the Federal National Mortgage Association and any affiliate thereof; and
(B)
the Federal Home Loan Mortgage Corporation and any affiliate thereof.
(11)
Entity-affiliated party
The term “entity-affiliated party” means—
(A)
any director, officer, employee, or controlling stockholder of, or agent for, a regulated entity;
(B)
any shareholder, affiliate, consultant, or joint venture partner of a regulated entity, and any other person, as determined by the Director (by regulation or on a case-by-case basis) that participates in the conduct of the affairs of a regulated entity, provided that a member of a Federal Home Loan Bank shall not be deemed to have participated in the affairs of that Bank solely by virtue of being a shareholder of, and obtaining advances from, that Bank;
(C)
any independent contractor for a regulated entity (including any attorney, appraiser, or accountant), if—
(i)
the independent contractor knowingly or recklessly participates in—
(I)
any violation of any law or regulation;
(II)
any breach of fiduciary duty; or
(III)
any unsafe or unsound practice; and
(ii)
such violation, breach, or practice caused, or is likely to cause, more than a minimal financial loss to, or a significant adverse effect on, the regulated entity;
(D)
any not-for-profit corporation that receives its principal funding, on an ongoing basis, from any regulated entity; and
(E)
the Office of Finance.
(12)
Executive officer
(13)
Limited-life regulated entity
(14)
Low-income
The term “low-income” means—
(A)
in the case of owner-occupied units, income not in excess of 80 percent of area median income; and
(B)
in the case of rental units, income not in excess of 80 percent of area median income, with adjustments for smaller and larger families, as determined by the Director.
(15)
Median income
(16)
Moderate-income
The term “moderate-income” means—
(A)
in the case of owner-occupied units, income not in excess of area median income; and
(B)
in the case of rental units, income not in excess of area median income, with adjustments for smaller and larger families, as determined by the Director.
(17)
Mortgage purchases
(18)
Multifamily housing
(19)
Office of Finance
(20)
Regulated entity
The term “regulated entity” means—
(A)
the Federal National Mortgage Association and any affiliate thereof;
(B)
the Federal Home Loan Mortgage Corporation and any affiliate thereof; and
(C)
any Federal Home Loan Bank.
(21)
Single family housing
(22)
State
(23)
Total capital
The term “total capital” means, with respect to an enterprise, the sum of the following:
(A)
The core capital of the enterprise; 1
1
 So in original. The semicolon probably should be a period.
(B)
A general allowance for foreclosure losses, which—
(i)
shall include an allowance for portfolio mortgage losses, an allowance for nonreimbursable foreclosure costs on government claims, and an allowance for liabilities reflected on the balance sheet for the enterprise for estimated foreclosure losses on mortgage-backed securities; and
(ii)
shall not include any reserves of the enterprise made or held against specific assets.
(C)
Any other amounts from sources of funds available to absorb losses incurred by the enterprise, that the Director by regulation determines are appropriate to include in determining total capital.
(24)
Very low-income
(A)
In general
The term “very low-income” means—
(i)
in the case of owner-occupied units, families having incomes not greater than 50 percent of the area median income; and
(ii)
in the case of rental units, families having incomes not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.
(B)
Rule of construction
For purposes of section 2
2
 So in original. Probably should be “sections”.
4568 and 4569 of this title, the term “very low-income” means—
(i)
in the case of owner-occupied units, income in excess of 30 percent but not greater than 50 percent of the area median income; and
(ii)
in the case of rental units, income in excess of 30 percent but not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.
(25)
Violation
(26)
Conforming mortgage
The term “conforming mortgage” means, with respect to an enterprise, a conventional mortgage having an original principal obligation that does not exceed the dollar amount limitation in effect at the time of such origination and applicable to such mortgage, under, as applicable—
(A)
section 302(b)(2) of the Federal National Mortgage Association Charter Act [12 U.S.C. 1717(b)(2)]; or
(B)
section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act [12 U.S.C. 1454(a)(2)].
(27)
Extremely low-income
The term “extremely low-income” means—
(A)
in the case of owner-occupied units, income not in excess of 30 percent of the area median income; and
(B)
in the case of rental units, income not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.
(28)
Low-income area
(29)
Minority census tract
(30)
Shortage of standard rental units both affordable and available to extremely low-income renter households
(A)
In general
The term “shortage of standard rental units both affordable and available to extremely low-income renter households” means the gap between—
(i)
the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 30 percent of the adjusted area median income as determined by the Director that are occupied by extremely low-income renter households or are vacant for rent; and
(ii)
the number of extremely low-income renter households.
(B)
Rule of construction
(31)
Shortage of standard rental units both affordable and available to very low-income renter households
(A)
In general
The term “shortage of standard rental units both affordable and available to very low-income renter households” means the gap between—
(i)
the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 50 percent of the adjusted area median income as determined by the Director that are occupied by either extremely low- or very low-income renter households or are vacant for rent; and
(ii)
the number of extremely low- and very low-income renter households.
(B)
Rule of construction
(Pub. L. 102–550, title XIII, § 1303, Oct. 28, 1992, 106 Stat. 3942; Pub. L. 110–289, div. A, § 1002(a), title I, § 1128(d), July 30, 2008, 122 Stat. 2659, 2702.)
cite as: 12 USC 4502